A company knows that unit cost C and unit revenue R from the production and sale of x units are related by . Find the rate of change of revenue per unit when the cost per unit is changing by $12 and the revenue is $4000.

Apr 14th 2010, 01:56 AM

tom@ballooncalculus

Related rates nearly always depend on the chain rule, so you might want to try filling up this pattern...

... where straight continuous lines differentiate downwards (integrate up) with respect to the main variable (in this case x, because we're speaking of rates of change with respect to x), and the straight dashed line similarly but with respect to the dashed balloon expression (the inner function of the composite which is subject to the chain rule).

Here we're given a formula relating two variables, which is the top row...

A company knows that unit cost C and unit revenue R from the production and sale of x units are related by . Find the rate of change of revenue per unit when the cost per unit is changing by $12 and the revenue is $4000.

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You are told that [tex]\frac{dC}{dR}= 12 and R= 4000. You can calculate C from and put those numbers into the equation above.